Market Trends

The Return of Cherry To Asian Markets

By World Hardwoods

American Black Cherry (Prunus serotina) is different from European Cherry (Prunus Avium) and most important
right now the American Cherry is plentiful and affordable. At the height of its last fashion cycle, Cherry was desired
for its warm colour, attractive grain and superb finishing characteristics for furniture and interiors. Today
there are signs in Asian markets that Cherry is poised for a comeback. Why wouldn’t it, at today’s prices?

Wabi Sideboard by Japanese architects Setsu and Shinobu Ito in American Cherry.

At the recent IFMAC wood show
in Jakarta several U.S. exporters
reported increasing interest in
Cherry, while at the Vietnamwood
show some buyers were very
surprised to learn just how competitive Cherry
lumber now is.

The Hardwood Review Global recently wrote:
“American Black Cherry grows throughout the
eastern United States, accounting for about
3% of U.S. hardwood lumber production and
4% of hardwood lumber exports. Eighty-one
percent of Cherry exports in the first quarter of
2015 were to Asian markets and Europe less
than 2%. Cherry is a premium species most
often used in high-end furniture, cabinetry,
millwork and panelling. The heartwood has a
rich, reddish colour that darkens with age, while
the sapwood is lighter coloured. Colour sorting
to limit the sapwood content and reduce colour
variations is common, and Cherry lumber is now
available in a variety of colour specifications,
such as 90/50 Red, (which specifies that 90%
of one face and 50% of the other will be red
heartwood). Higher specifications (90/70, 90/80,
100/70) are increasingly available.

After the U.S. housing and financial crises in
the mid-2000s, Cherry’s premium prices began
THE RETURN OF CHERRY
TO ASIAN MARKETS
by World Hardwoods
to impact demand, and manufacturers began
finishing less expensive species to achieve
a “Cherry look”. By the late 2000s, Cherry
prices had collapsed. Unselected Cherry prices
recovered from 2012 to 2014—first in the
common grades and ultimately in FAS/1F.

Price gains were even more impressive in
2014 for the higher quality 90/50 Red Cherry,
though prices peaked in midyear. Over the
last six months, however, 26 mm (4/4) FAS/1F
Cherry prices have fallen 6-10%, while #1 and
#2 Common prices are down 4-7%. Cherry is
still a bargain compared to historic prices, and
supplies will tighten as rising U.S. housing
activity generates additional demand for
furniture and cabinetry.”

This last point is reflected in the prices quoted
in U.S. trade journals which suggest (in October)
that for Cherry lumber in certain grades and
thicknesses there is little difference between
White Oak and Black Cherry, although here
a note of caution needs to be sounded. Oak
and Cherry are two species that can vary in
terms of characteristics and visual appearance,
according to the soil conditions and particularly
the growing region. For example, the Hardwood
Market Report in Tennessee quoted on 2nd
October 4/4 (1”) FAS grade Cherry from the Appalachian region at US$1,220 per MBF, whereas North
Central prime growing area was US$1,365 for the same
specification. For comparison Appalachian White Oak was
quoted as US$1,340 – all ex-mill FOB. The price for 5/4 (1
¼”) #1 Common furniture grade Cherry is even relatively
cheaper than White oak. It should also be noted that Cherry
is a single species whereas Oak has many sub-species.
Cherry may exhibit gum pockets from some areas and White
Oaks characteristics are quite variable.

In the first half of 2015, U.S. Cherry lumber exports
worldwide were up 8% in value to US$47.8 million
compared to the same period in 2014. Volume was up
12% to 60,725 cubic metres, suggesting weakening
prices or lowering of grades exported. In China value
was up 5% and volume up 8%. Vietnam increased
by around 300% to US$4.2 million and 4,158 cubic
metres. Malaysia, Thailand and Indonesia all increased
significantly in the same period, from a small base.

Here is what some of the Cherry exporters in the USA
explain.

“Cherry has always been a sign of affluence and is a
heritage species which must now be the most undervalued
in the USA,” says Ted Rossi of Emporium Hardwoods in
Pennsylvania.

Dean Alanko at Allegheny Wood Products in West Virginia
comments “There’s only one American Black Cherry, and
we are blessed to be located in area where we saw and dry
it on a regular basis. With deep, warm and rich color, it is
truly one of the best woods for a high-end furniture and
millwork application when the desire is to show the true
beauty of wood.”

“Cherry from our Appalachian area of East Tennessee is good
value for the quality. For example, in a lot of the cherry there
are minimum gum pockets,” said Adam Moran of Hermitage
Hardwoods, speaking at the recent Vietnamwood show.
The American Hardwood Export Council recently launched
the latest advert in its ‘Designed in Asian and made in Asia
with American hardwood” featuring a Cherry chair. It will act
as a reminder of its natural reddish colour, which hopefully
will be left to shine, now that the market obsession with dark
stained furniture has eased.

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